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Rates and Terms*
The rate on your Federal Consolidation Loan will be based on the weighted average of the interest rates (before any lender discounts) on the loans you’re consolidating, excluding Health Education Assistance Loans (HEAL). The weighted average is rounded up to the nearest 0.125%, with a maximum rate of 8.25%. This rate will be fixed for the life of your consolidated loan.
Fees
By law, lenders cannot charge an application fee
for Federal
Consolidation Loans. This law also applies to
loan guarantors.
Terms
You may have up to 30 years to repay your consolidation loan, depending on the total outstanding balance of your student loans. Extending your repayment period can increase your total interest paid, since you’re making smaller principal payments over a longer period of time. But consolidation loans have no prepayment penalties, so you can always choose to accelerate repayment without incurring additional charges.
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| Outstanding Education Debt |
Repayment Period |
| $20,000 – $39,999 |
20 years |
| $40,000 – $59,999 |
25 years |
| $60,000+ |
30 years |
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Federal Consolidation Loans offer several repayment options, including extended, graduated and income-sensitive repayment, as well as deferment and forbearance benefits.
* Please be aware that while we continue to offer Private Student Loans, NextStudent is not currently able to accept any new PLUS, Grad PLUS, Stafford, or Federal Consolidation Loan applications.
On October 1, 2007, legislation went into effect that cut $21 billion in subsidies to FFELP lenders like NextStudent. We have been searching, and continue to search, for avenues that would allow us to keep offering FFELP loans. But at this point, until market and regulatory conditions change, we find ourselves forced to suspend our federal education loan programs.
We value your business, and we want to make sure you’re able to get the money you need to pay for school. We encourage you to take advantage of college scholarships and your available federal financing options. But if you’re still in need of a parent or student loan, please give us a call, and we’ll do what we can to help.
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